L’Oréal cosmetics to expand retail presence in India

Cosmetics manufacturer L’Oréal is planning to expand its retail presence in India’s major cities, with an aim to tap the 30% annual growth in a colour cosmetics market worth Rs22.5bn ($410.54m) by annual sales.

The France-based firm is mulling expanding its L’Oréal Paris brand make-up studios, along with shop-in-shop outlet concept in the malls of the five major Indian cities, reports website livemint.com.

In 2010, the firm opened its first make-up store at Mumbai’s Palladium mall, followed by shop-in-shops — hiring space in departmental stores — in Delhi in 2012.

Besides, the firm is also planning to open stores in Bangalore, Chennai and other cities.

L’Oréal India consumer products division director Satyaki Ghosh said the firm globally operates such concept stores in selected countries, where specialised retail is not very strong.

“We wanted to create our own stores to ensure quality and consumer interaction with the brand,” said Ghosh.

L’Oréal Paris, in other countries, retails through specialised departmental stores as well as large pharmacy chains, which will offer its colour cosmetics range, such as eye shadows, eye-liners, blushers, lipsticks and foundations, and is staffed by make-up experts.

According to research agency Euromonitor, the colour cosmetics category in 2011 grew 29% by value to reach Rs22.5bn ($410.54m), besides the sales in the category are expected to reach Rs47.6bn($868.5m) by 2016.

L’Oréal’s expansion strategy in India follows the firm’s slow down in other Asian markets such as South Korea and China.

The firm has 13 Lancôme points of sale (four boutiques and nine department-store counters), six Kiehl’s boutiques and over 100 points of sale for Giorgio Armani and Ralph Lauren fragrances.

L’Oréal India is also constructing a research and innovation centre in Mumbai, which is expected to be inaugurated in January 2013, reports the website.

The centre will aim to create new products for the Indian market, as L’Oréal India also operates a hair-colour, hair care and skin care products manufacturing and distribution centre located in Chakan, Pune in the state of Maharastra.